He also made some semi-incoherent comments about buying back Treasury debt at a discount. As I pointed out Friday, the real reason behind his comments on buying debt back at a discount is because he realizes that his many spending programs in a Trump administration, "strengthening" the military, expanding infrastructure, etc. would balloon the deficit and he needs to justify the growing deficit. His argument will be:

"Don't worry about the ballooning debt under my administration. I am the king of debt. The debt will grow the economy and make it easy to pay off, but if the economy doesn't improve, it still won't be a problem because the debt can be paid off at a discount."

Mike Norman, one of the chief princelings of the MMTers, says government debt is nothing but highly desired super safe assets. This theory which holds that the government can never run out of fiat money, is catching on big with the “progressives”.

Gundlach could have said that Trump would end up adding trillions in super-safe assets to the global economy. Assets that people have been clamoring for, for decades. But he didn't say that because he doesn't understand.

Next he says that the country "wouldn't be able to handle" all that additional debt.

Both of the clown hosts agree with him. What the hell does that mean? The country and the world, even, couldn't handle trillions more in super-safe assets? Nothing. No understanding. Nothing. Frightening, really. He's the bond KING, remember.

Then he says "rates would skyrocket." May I remind you--again--this is coming from the mouth of the Bond King. Again, no understanding at all that rates would still be set by the Fed. Shocking.

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And then there's this:

"More tax dollars would go toward repaying the debt."

Wow. Where do those tax DOLLARS come from? The government has to add those dollars to the economy before anyone can even "repay the debt," which means there is no repaying of the debt at all. The only thing that happens is a bookkeeping entry over at the Fed, where the accounts of Treasury holders are debited and their reserve accounts (cash) are credited. Like moving your money from your savings account to your checking account.